This document traces the history of electronic tax filing in the United States from 1986, when the IRS first piloted an e-filing program for 1040 tax returns, to 2014, when the IRS approved e-signatures for tax forms. Key developments included the launch of nationwide e-filing in 1990, the Uniform Electronic Transactions Act in 1999 recognizing e-signatures, and mandatory e-filing for tax preparers beginning in 2009. By 2013, over 122 million tax returns were e-filed electronically.

1. 1980
1990
1990
E-file is available across the country,
with 4.2 million returns e-filed.
1999
The Uniform Electronic Transactions ACT
(UETA) is developed. 47 states sign on.
2014
IRS approves e-signatures for Form 8879
on March 11.
The next day, Wolters Kluwer, CCH releases
CCH® eSign, the only e-signature tool for
accountants that meets the IRS requirements.
2000
1986
The IRS pilots its first e-file program for
1040s. 5 Tax preparers in 3 cities e-file 25,000
tax returns.
2002
Taxpayers can sign e-file returns using a
Personal Identification Number (PIN).
The process is now entirely paperless except
for Form 8879.
2010
Paper Form 1040 packages are no longer
mailed to taxpayers.
2000
The Electronic Signatures in Global and
National (ESIGN) Commerce Act of 2000
is enacted.
2009
Mandatory e-filing for tax preparers begins
to be phased in.
Like taxes, electronic tax compliance is constantly changing with the times.
Take a look at how far the technology has come.
The Journey of Electronic Tax Compliance
Old Manual 8879 Workflow New CCH eSign Workflow
Return is reviewed and readied for e-file. Return is reviewed and readied for e-file.
Form 8879 and a copy of the tax return are sent to taxpayer. CCH eSign automatically:
• Generates an email to the taxpayer with reminders.
• Asks the taxpayer to answer KBA questions.
• Collects taxpayer signatures.
• Sends the e-signed documents to the firm and taxpayer.
• Updates the Electronic Filing Status System.
Firm and client trade phone calls and emails to get the
signed 8879 back to the firm quickly.
Taxpayer signs and faxes, scans, mails or drops off Form 8879.
Firm receives, logs and retains Form 8879.
Firm releases the return to be electronically filed. Firm releases the return to be electronically filed.
Superior Workflow
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Sources
http://www.irs.gov/uac/IRS-E-File:-A-History
http://www.signix.com/blog/bid/90814/Security-and-Intent-for-E-Signatures-Celebrating-National-Cyber-Security-Awareness-Month-Continues
For More Information
CCHGroup.com/CCHeSign
9/14 2014-0387-3
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2005
More than 50% of returns are now e-filed.
= 10%
2013
More than 122 million returns are e-filed.
Nearly 63% are filed by tax professionals.
= 10 million